1.1 	A bill for an act
1.2 	relating to taxation; tobacco; modifying the sale of cigarette stamps;amending 
1.3 	Minnesota Statutes 2016, sections 297F.08, subdivisions 5, 7, 8; 297F.09, 
1.4 	subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 297F.08, subdivision 5, is amended to read:
1.7 		Subd. 5.Deposit of proceeds. The commissioner shall use the amounts appropriated 
1.8 	by law to purchase stamps for resale. The commissioner shall charge the purchasers for the 
1.9 	~~costs of the stamps along with the~~ tax value of the stamps plus shipping costs. The ~~costs~~ 
1.10 	~~recovered along with~~ shipping costs recovered must be deposited into the general fund.

1.11 	EFFECTIVE DATE. This section is effective for sales of stamps made after June 30, 
1.12 	2017.

1.13 	Sec. 2. Minnesota Statutes 2016, section 297F.08, subdivision 7, is amended to read:
1.14 		Subd. 7.Price of stamps. The commissioner shall sell stamps to any person licensed 
1.15 	as a distributor at a discount of 0.30 percent from the face amount of the stamps purchased 
1.16 	in any fiscal year, except that such discount shall not apply to that portion of the face amount 
1.17 	of the stamps representing the cigarette sales tax as imposed under section 297F.25. The 
1.18 	commissioner shall not sell stamps to any other person. The commissioner may prescribe 
1.19 	the method of shipment of the stamps to the distributor as well as the quantities of stamps 
1.20 	purchased.

1.21 	EFFECTIVE DATE. This section is effective for sales of stamps made after June 30, 
1.22 	2017.

2.1 	Sec. 3. Minnesota Statutes 2016, section 297F.08, subdivision 8, is amended to read:
2.2 		Subd. 8.Sale of stamps. The commissioner may sell stamps on a credit basis under 
2.3 	conditions prescribed by the commissioner. The commissioner shall sell the stamps at a 
2.4 	price which includes the tax after giving effect to the discount provided in subdivision 7. 
2.5 	~~The commissioner shall recover the actual costs of the stamps from the distributor.~~ The 
2.6 	commissioner shall annually establish the maximum amount of stamps that may be purchased 
2.7 	each month.

2.8 	EFFECTIVE DATE. This section is effective for sales of stamps made after June 30, 
2.9 	2017.

2.10 	Sec. 4. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:
2.11 		Subdivision 1.Monthly return; cigarette distributor. On or before the 18th day of 
2.12 	each calendar month, a distributor with a place of business in this state shall file a return 
2.13 	with the commissioner showing the quantity of cigarettes manufactured or brought in from 
2.14 	outside the state or purchased during the preceding calendar month and the quantity of 
2.15 	cigarettes sold or otherwise disposed of in this state and outside this state during that month. 
2.16 	A licensed distributor outside this state shall in like manner file a return showing the quantity 
2.17 	of cigarettes shipped or transported into this state during the preceding calendar month. 
2.18 	Returns must be made in the form and manner prescribed by the commissioner and must 
2.19 	contain any other information required by the commissioner. The return must be accompanied 
2.20 	by a remittance for the full unpaid tax liability shown by it less 0.30 percent of the liability 
2.21 	on the face amount of the stamps purchased, excluding that portion of the face amount of 
2.22 	the stamps representing the cigarette sales tax as imposed under section 297F.25, as 
2.23 	compensation to reimburse the distributor for expenses incurred in the administration of 
2.24 	this chapter. For distributors subject to the accelerated tax payment requirements in 
2.25 	subdivision 10, the return for the May liability is due two business days before June 30th 
2.26 	of the year and the return for the June liability is due on or before August 18th of the year.

2.27 	EFFECTIVE DATE. This section is effective for sales of stamps made after June 30, 
2.28 	2017.